Something radical is happening in the staid world of electricity production. While most people give little thought to where their electricity comes from, the deregulation of the power industry now under way in a number of states means that, for the first time, consumers will have a choice of how the electricity that they pay for is produced. And in states that have already deregulated their electricity monopolies, consumers are increasingly choosing renewable energy sources, such as wind power, over cheaper but more highly polluting coal and other fossil fuels.
A startup called GreenMountain.com is the company moving most aggressively to take advantage of this “green” preference in what the U.S. Department of Energy estimates is a $217 billion electricity market. Indeed, by making the choice of renewable energy just a mouse click away, Vermont-based GreenMountain hopes to establish itself as the green brand of energy. “I want to be the Starbucks, the Coca-Cola, and the Ben & Jerry’s of electricity all rolled up into one,” says Dennis Kelly, GreenMountain’s president and CEO.
More than half of the states have or are starting to dismantle their electricity monopolies. GreenMountain has already begun business in two-California (where 66 percent of electricity comes from coal, oil and nuclear power) and Pennsylvania (which generates 98 percent of its electricity from fossil fuels and nuclear power). This year, the company will enter Connecticut and New Jersey, with New York and Massachusetts not far behind, according to Kelly. So far, more than 100,000 households, plus businesses such as Kinko’s and Birkenstock, have switched to GreenMountain.com, even though it costs a typical household between $6 and $12.50 more per month.
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